Tax Guidance Needed for B2B SaaS

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Global VAT/Tax Collection for SaaS B2B: Does a SaaS company, selling B2B, need to collect VAT or any other form of tax in different countries where it offers services?

Any guidance, resources, or advice you could share would be incredibly appreciated. Thank you so much for helping out!

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By FactChecker
02nd Apr 2024 22:42

The first thing to decide (despite what it says on the tin) is whether you're actually supplying a service or a product or a hybrid.

Not the same question (i.e. not specific to VAT a topic on which if you're lucky the experts will come along some time), but that central question crops up regularly - for instance https://www.accountingweb.co.uk/any-answers/saas-a-service-or-a-product

A little more detail as to what you're selling/supplying would probably help on the VAT front.

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Replying to FactChecker:
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By benner999
03rd Apr 2024 09:58

Thx to the reply ;)

Im pretty sure my product goes under the category: Service.

We sell a AI Email automation service the integrate into users email account. Its all cloud and no extra software needed on client side.

Forgot to tell that the company is reg. in Portugal.

Thx.

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By taxdigital
03rd Apr 2024 08:27

I agree with the above that it's a question of goods v services.

As I understand software sold to all as a standardised product (e.g. Norton Anti-Virus products) is treated as goods whereas bespoke software created for a business is treated as services.

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